Proprietary Information

Don't Break The Law

By: John Di Frances

Every day companies unwittingly violate U.S. export law. Whether they are transferring technical information to a joint venture partner in a European country or shipping a computer CD to an overseas client, they are potentially putting their own company at risk.

   The penalties for such errors are daunting, and ignorance of the law is not a defense. For a mere administrative (civil) infraction, the penalty is up to $100,000 per occurrence. For intentional misdeeds, which are accorded criminal penalties, well, let’s not even go there. Such are the dangers of operating in a global environment.

  Few business executives realize that these laws apply to a far wider range of products and technical information than the obvious military armaments. Computer software, including off-the-shelf commercial office programs, is in many cases subject to export controls, as are many other seemingly commercial items having a potential dual use.

  The loss of proprietary advantage is an even larger danger. As industrial espionage increases, companies must find new ways to keep their information out of ...

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